Nearly a dozen states permit the creation of domestic asset protection trusts (DAPTs) to shield their assets. Unfortunately, California is not one of them. However, you do have the option of creating a foreign asset protection trust (FAPT.) FAPTs offer various asset protection benefits that DAPTs cannot and there is a reason that they continue to rise in popularity. One of the greatest reasons is that FAPTs are not governed […]
Continue readingCharitable giving can leave a legacy of generosity for years and even decades after you have passed away. Not only does charitable giving have a philanthropic appeal, but it provides enormous income, state, capital gains, and gift tax deduction benefits. While some donors gift money during their lifetime, others bequeath assets to charity through wills and trusts that go into effect upon their deaths. Depending on the type of charity […]
Continue readingEffective January 1, 2018, new tax laws lowered the requirement to pay taxes on certain inheritance trusts in California. For those hoping to pass down significant inheritance, your beneficiaries now may avoid paying taxes on your generous gift because of an increased threshold. Generation-skipping trusts are included in the tax exemption change. In 2010, generation-skipping trusts exceeding $5 million were subject to extreme taxes. The government could tax your gift up to […]
Continue readingWhether you want to donate money as a budding philanthropist, avoid taxes or diversify your investment portfolio, Charitable Remainder Trusts (CRTs) can be a good way to accomplish all three goals at once. Before creating a CRT, it can be helpful to have a basic understanding of how they work and the terms. An Overview Of Charitable Remainder Trusts When you create a CRT, you will first choose the trust’s […]
Continue readingYou have worked hard to build your fortune and minimizing the portion that will go to the IRS is possible during your lifetime with smart estate planning. While there are a number of tax-avoidance strategies in estate planning, here we will discuss two that may be able to save you and your heirs a large sum in the long run. Gift Assets Giving away assets to family members and charitable […]
Continue readingA new tax law affecting the wealth transfer system became effective January 1st of this year. The new law, known as the Tax Cuts and Jobs Act (TCJA), offers a truly unique opportunity to transfer portions of your wealth to your loved ones with fewer tax penalties. Are you taking advantage of the new law? Tax exemption amounts increase This new law increases the annual tax exemption amount of federal estate, […]
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Dear Clients, Colleagues, and Friends, California… A land of golden sandy beaches, ancient towering trees, world-changing innovation, perfect sunny weather… and taxes. Lots and lots of taxes One thing Californians could always count on, until recently, was that their state and local taxes (S.A.L.T.) could be deducted from their annual federal tax returns, easing what was already a hefty annual tax burden. This included an annual deduction for property taxes. […]
Continue readingAs you consider estate planning, you decide that one of your main goals is to leave much of your money to charity. It’s always been important to you, and you want to leave behind a legacy you can be proud of. At the same time, your goal is to reduce the amount of taxes you pay as much as possible. You want to do this legally, but you’re interested in […]
Continue readingIn our recent Client Alert, we provided a summary of salient parts of the Tax Cuts and Jobs Act of 2017. Under the section Pass-Through Businesses, we wrote: “Pass-through income exceeding the $315,000/$157,000 thresholds receives no 20% deduction.” We misstated the phase out provisions. Here is what we should have stated: · If taxable income is less than $157,500 (single filer)/$315,000 (married filing jointly) the 20% deduction is fully available. […]
Continue readingWhat does the largest overhaul of the tax code in a generation mean to you, and how does it affect your planning? While this is a highly complex and voluminous law, read on for highlights and suggestions for planning wisely. Please contact our office to update your plan so that you gain maximum benefit from the new tax law and limit avoidable costs. Change to the Income Tax Brackets Under […]
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